HANOI (Reuters) – Vietnam’s central financial institution is able to promote U.S. {dollars} to the market to maintain the trade fee steady, Governor Nguyen Thi Hong mentioned on Monday (NASDAQ:).
“The trade fee market has been unstable after the Fed’s fee cuts,” Hong instructed the parliament in Hanoi, including that market administration is a difficult activity.
Hong mentioned the central financial institution will prioritise stability and inflation management, however can have measures to assist the federal government’s objective of lifting the tempo of financial development.
“We’re ramping up packages of preferential loans for initiatives to develop properties for low-income earners and for the aquatic trade,” Hong mentioned.
Financial development has largely been reliant on sturdy credit score development, however Hong mentioned complete excellent loans are “already excessive”, equal to 120% of GDP.
“It is dangerous to proceed counting on easing measures,” Hong mentioned.
She mentioned there’s a have to encourage companies to lift funds through the company bond and inventory markets.